A foreign direct investment (FDI) is an investment in the form of a controlling ownership in a business in one country by an entity based in another country. It is thus distinguished from foreign portfolio investment by a notion of direct control.
The origin of the investment does not impact the definition as an FDI: the investment may be made either “inorganically” by buying a company in the target country or “organically” by expanding operations of an existing business in that country.
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